What Austin's FC Stadium Means for Residential Real Estate

FC Stadium Real Estate Effect

Texas Longhorns were the only spectator sport in Austin for decades. Austin had ice hockey with the IceBats, arena football with the Austin Wranglers, soccer with the Aztex, and most recently San Antonio’s basketball clone – the Austin Spurs.

Of all the non-collegiate teams, Austin Spurs is the last team standing. But the area will get a second chance at seeing soccer games with the Austin FC stadium being built at McKalla Place near the Domain!

 

FC Stadium Making Moves in Austin, Texas

September 9th, 2019, was the groundbreaking day with co-owner and Oscar-winning actor Matthew McConaughey in attendance. The duration of construction for the Austin soccer stadium is expected to be 18 months with hopes of having its first game in April 2021.

Austin FC is the 27th franchise as well as Austin’s first top-division major professional sports team. While the project is backed by private Two Oak Ventures, LLC, the land it sits on is owned by the city of Austin. 

Austin Mayor Steve Adler expects this project to generate 130 affordable housing units, youth programs, and new jobs.

How else will the new soccer stadium impact Austin?

 

Current Outlook of Austin’s Population and Real Estate Market

Some residents will say, “Austin is full, don’t move here,” but that didn’t stop the population from growing 20% over the last 8 consecutive years.

The fastest-growing metro area in the US, Austin, Texas population for 2020 is projected to hit the 1 million mark. 

In 2010, home sales averaged around $200K and in 2019 it’s at about $320K median. Another 0.8% price increase is expected for 2020.

A 2019 study finds that there is a nationwide housing shortage of about 260,000 units. Austin is on the verge of an affordable housing crisis as household income has not kept pace with rising real estate values. The price to income ratio is higher than it was in the mid-2000s.

While this trend would continue either way regardless, it does raise the question of how the Austin FC stadium would affect housing costs. 

North Austin has been revitalized by The Domain’s development. It’s like a second downtown with all its amenities and has been coined the “Silicon Valley” of Austin. Home values in this area have seen a 117% in the last decade. 

In many cases, when a new stadium comes in, gentrification comes along with it. The FC Cincinnati stadium is under construction with a target completion date of March 2021. Low-income residents are at risk of losing their homes.

The Domain area is already established as a prime real estate area, so there isn’t likely to be gentrification (rather there is a plan to build affordable housing alongside the project). But what Cincinnati proved is how the anticipation of a stadium affects the market, even before the first game day. 

 

How the New Austin FC Stadium Location Could Impact Real Estate

Realtors expect The Domain area will continue to lure new residents. “When Austin FC gets on up there in North Austin, that’s going to be a really fun place to be,” says realtor Jonny Rogers.

Chris Watters (a household name in Austin real estate) also believes the FC complex will give the area a boost. “You’re going to see a big increase in people wanting to open up businesses in that area,” said Watters.

McKalla Place is an industrial area that consists of mostly microbreweries, with residential areas not in direct proximity. Watters expects the taxes to go up for homeowners even if they don’t live very close to the complex.

Commercial real estate will likely see a boost. With sports and beer being longtime friends, the nearby breweries should hang onto their location.

 

What Austin FC Stadium Means for Homesharing Businesses

SXSW, Austin City Limits Festival, F1 Races, are the most notable events happening annually in Austin. Out of town guests come in droves to attend. 

Designed with a seating capacity of 20,500 we can guess that a chunk of those FC Austin seats will be filled by big fans of the away teams. Many of those fans will be from out of town and need a place to stay. 

The City of Austin has taken note of the demand for short term rentals generated from events like SXSW. In 2016, the city government began cracking down on Airbnb and HomeAway by requiring licenses, sales tax due, and setting a plan to outlaw any short-term rental at a property not occupied by the homeowner. 

This sweeping ban isn’t in effect until 2022 and the courts, as well as state lawmakers, have actively challenged these policies. Meanwhile, Austin has started enforcing their license requirements with fines. These challenges have the potential to cancel this ban so that short term rentals won’t be restricted.

At any rate, Austin will continue to attract visitors to popular events, and the Austin FC stadium will be no exception.

 

Austin FC is On Track To Make the Goal

So Austin gets a new team to cheer for, Matthew McConaughey gets a new gig, local breweries stand to get a boost, and The Domain will be even more of an entertainment hub.

March 2021 is still a year away, but you can peek in on the progress by checking the feed of the construction cam! As for construction debris, Captain Hook is here to provide your next dumpster rental. If you have a project coming up, contact us!